Paxtradings Crypto Minute: June 11, 2018

Market Plummets Following Hack of South Korean Cryptocurrency Exchange, Coinrail

The market price of Bitcoin and other cryptocurrencies decreased significantly following news that South Korea-based cryptocurrency exchange, Coinrail, was hacked. According to the Guardian, Coinrail confirmed the hack in a statement on its website. The company disclosed that its system was hit by “cyber intrusion” on June 10, 2018, which resulted in 30 percent of the coins stored on the exchange being stolen. South Korean news outlet Yonhap News estimated that the value of the cryptocurrency stolen is about USD 37 million.

BTC City to Open At Shopping Mall in Ljubljana, Slovenia

Officials in Ljubljana, Slovenia have approved the opening of the world’s first “Bitcoin city” in a local shopping mall. According to Express.co.uk, customers will be able to pay for goods with Bitcoin and a few other cryptocurrencies. Slovenia’s Prime Minister, Miro Cerar, and State Secretary, Tadej Slapnik, visited the shopping mall where they had coffee purchased with cryptocurrency. Executives of BTC City stated, “Bitcoin City will create an open society which will enable users to pursue their missions as well as develop their business environments in line with their wishes, needs and operating policies.”

Lithuania’s Ministry of Finance Issues Guidance to ICOs To Clarify When Tokens Are Securities

Lithuania’s Ministry of Finance has issued guidelines on ICOs that outline when cryptocurrencies qualify as securities. According to CoinDesk, the guidance as outlines how each aspect of an ICO should be regulated by different laws in the country. The guidance suggests any cryptocurrencies sold in an ICO that “grant profits or governance rights” to investors are almost certainly securities. The guidance also suggests that civil code applies to all ICOs, but additional financial regulations apply to security tokens. The Ministry of Finance specifies that the framework is not a formal piece of legislation.

IDA Ireland is leading an initiative known as Blockchain Ireland to promote innovation and cooperation across companies. Other participants in the initiative include the Department of Finance, Enterprise Ireland, and Consensys. According to the Irish Times, the government will use Blockchain Ireland to promote the country as a desirable location for blockchain-focused companies.